Google is reportedly moving ahead with plans to shift all manufacturing of its Pixel devices out of China beginning in 2027, with production set to relocate to Vietnam and India, according to a report by Nikkei Asia published last week.

The technology giant has previously made its Pixel phones, watches and earbuds in China — though that is set to change next year, as Google has informed suppliers that production of those devices will move out of the country and into Vietnam and India. Google had already signaled a foothold in the region, announcing in late 2023 that it planned to begin manufacturing Pixel phones in India.

Nikkei cited a source who told the outlet that Google will be better positioned to move production out of China than tech rival Apple because Pixel devices are not sold directly in the Chinese market, while Google also has a relatively small base of smartphone users. Apple, by contrast, still assembles the bulk of its hardware in China and sells iPhones there directly, though it has expanded iPhone assembly in India and moved some production to Vietnam in recent years.

The plan builds on an earlier stage of the effort. Nikkei Asia reported in January that Google was planning to develop and manufacture Pixel 11 devices exclusively in Vietnam, a process that required investment in testing equipment as well as tooling machines. According to the latest report, the success of that process prompted Google to expand production of other Pixel devices in Vietnam.

Google also reportedly told suppliers that it intends to increase shipments of Pixel phones by 8% to 10% this year, after the company shipped 12 million Pixel phones a year ago. The production boost comes against the backdrop of Google's push to promote consumer usage of its Gemini artificial intelligence (AI) tools.

If Google proceeds with the move, it would follow Samsung in shifting smartphone production out of China. Samsung's relocation took more than a year to complete and concluded in 2019, with most of its manufacturing moving to Vietnam and India. Samsung's exit helped turn Vietnam into a cornerstone of global electronics manufacturing, and the country has since attracted growing investment from tech companies pursuing a broader "China Plus One" diversification strategy, driven by US tariffs on Chinese-made goods and pandemic-era supply chain disruptions.

The shift also comes as an ongoing shortage of memory chips — caused by the AI buildout of data centers and cloud services — affects companies across the tech sector. The squeeze has been compounded as major memory makers direct more capacity toward high-bandwidth memory used in AI accelerators, tightening supply of the conventional chips that go into smartphones. Google has reportedly looked to address the issue by combining orders for phone memory chips with those for its AI and cloud businesses. By doing so, the company is able to enhance its negotiating position with major suppliers of memory chips, potentially leading to improved terms for its memory chip purchases across its business lines.

FOX Business reached out to Google for comment.

Source: Fox Business